Tyler Crowe

Shares of Shopify are down about 9% as we are taping this podcast today.

It was down as much as 10% both in pre-market and early market trading this morning after the company released first quarter earnings.

Of all the three of us here, I am the non-Shopify follower here, so I'm going to lean on you guys.

When I first looked at the press release, I would say in a vacuum, the numbers looked fine.

Revenue was up 34% year over year.

Gross merchandise volume, which the amount of stuff that was bought on its platform, would pass $100 billion for the first time.

Net income, taking out some investment gains and losses that aren't really related to the actual operating business, was $360 million.

Though, here's the knock.

It did miss expectations for the quarter.

And this is the second quarter in a row that it actually missed Wall Street expectations for operating earnings.

So, guys, I want to get your thoughts on this.

And was this missing Wall Street earnings for the second time kind of adding to AI jitters?

Was it maybe just Wall Street's expectations being a little too high?

When you saw these results, how did you see them?

Matt, let's start with you.

Matt, I want to dig a little bit more into what you were mentioning about this being an investment-heavy phase for the company.

This is something that I found a little peculiar.

As I was looking through the press release, I was looking at the financial statements.

This is where something feels different for me, and I'm trying to figure it out.

It has lots of cash, and it also holds a lot of equity in long-term investments in other companies relative to the total balance sheet of its size.